Deals Direct lists

 

deals directVeteran online department store, Deals Direct, has surprised the retail industry with news that it has begun trade on the Australian Stock Exchange (ASX).

The backdoor listing has been made possible as a result of its acquisition by former mobile and web solutions company, Mnemon, which had been in the process of deregistering from the ASX.

Around $6.2 million  in capital was raised through the sale of 5 million shares, with the total company valued at more than $21 million.

In addition to co-founder Michael Rosenbaum, investors in the new entity include private equity companies, CVC and Ellerston Capital, who have majority stakes.

CVC was already a stakeholder in Mnemon prior to the acquisition.The deal was completed on January 17. It is expected the $6.2 million raised will be put towards the funding of fellow e-commerce businesses.

Deals Direct was founded by Rosenbaum and Paul Greenberg in 2004, following their success on eBay. Greenberg parted ways with Deal Direct late in 2012 to become executive chairman and CEO of the National Online Retailers Association, a new e-commerce industry body set up to advocate and represent e-commerce in Australia.

The acquisition makes Deals Direct the first Australian e-commerce operator to be publicly listed. Rosenbaum will remain CEO.

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